Understanding Network “Marketing”


These past weeks have been totally awesome .I learned a lot of new life changing things. I think my passion in sharing to more people about my network marketing business has heightened to a point where sharing is worthwhile. Lately, I’ve been personally inviting a lot of people to attend business presentations in our office or just about anywhere, but the problem is most of them are saying the typical excuses of I don’t have time or they’re just not interested in doing the business even though they even haven’t heard it yet.. and really, it’s just a common problem most network marketers face. And the funny thing about it, and to the people who are skeptical about the network marketing business is.. I kind of understand them.

In fact, I think they’re just being cautious; cautious due to misinterpretations of BAD Companies and people in network marketing which have badly tainted the entire industry. Network marketing is too much of a great business model to be misunderstood as something bad by people.

Before I get to the main topic of what and how network marketing works, let’s get a little out of topic and shortly discuss.

 The 2 THINGS I Think why most people don’t want to be involved in network marketing

1. They think its a Pyramid Scam. Where the income comes from playing the money game from recruiting and investing money in the game. And in fact, a lot of companies out there are not network marketing companies but disguised themselves as a legitimate network company, well in reality they’re just a bunch of scheming groups.

2. They don’t like bugging,pleading and chasing people and sometimes lying to them just to get them in to a presentation.  Fact- there are people who are not negative about network marketing but are negative to the usual marketing strategies most network marketers.

(I’ll tackle this in another blog post. in the future 😀 )

And back to the main topic., about the network marketing concept, what really is it and how it works? okay.

Nowadays, in times of global recession, more and MORE people are finding alternative ways to earn that “extra money” instead of looking a “part time job”.  That’s where network marketing comes in to the rescue.

Network marketing is a business model, where people can start to be involved with just very little capital. The concept of MLM is when a person joins in the system, they have 2 businesses, first is the retail business and the other is the wholesale business.

The retail business is very simple here, when a person joins, he/she automatically CAN purchase products at Wholesale price (WSP) and sell products to customers (Non-member), at a price not lower than the suggested retail price (SRP). The difference of the SRP & WSP is their profit.

The wholesale side of the business, is where the “sponsoring” comes in to place. Sponsoring is when you bring people in to join your business, and when they join you will be able to get bonus commissions only when they purchase products, either for personal consumption or for retailing.

Take note that in a REAL network marketing system, income must be solely coming from product movement/sales and not on recruitment.


One thought on “Understanding Network “Marketing”

  1. Pingback: TOP 3 Reasons WHY MLM is awesome. | Joshua Nailes blog

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